Saylor suggests another purchase of Bitcoin by MicroStrategy

Yesterday, Michael Saylor posted a tweet suggesting another purchase of Bitcoin by MicroStrategy. 

Note that yesterday the price of Bitcoin was over $104,000, while today it is below $99,000. 

Saylor’s tweet on Bitcoin

Michael Saylor is the founder and the current chairman of MicroStrategy. 

It also has its own website, called SaylorTracker.com, where it publishes an updated chart of all Bitcoin purchases made by MicroStrategy.

Yesterday, he posted a screenshot of this chart. 

MicroStrategy is a publicly traded company, so it is required to publicly disclose its purchases of Bitcoin to the SEC. However, these official declarations have technical timelines that make them relatively slow in a market as rapidly evolving as the crypto one.

Saylor cannot personally make such official company communications, and so he lets them be properly made by the company, of which he has not been CEO for some time. 

The founder of MicroStrategy, however, knows very well when the company buys Bitcoin, only he cannot communicate it publicly until the official company announcement has been published. And so it seems that he publishes a tweet with the screenshot of the chart from SaylorTracker.com every time the company buys BTC, as if to warn without having to make any explicit declaration. 

Michael Saylor: the Bitcoin purchases by MicroStrategy

As seen from the chart, the first purchase of Bitcoin by MicroStrategy occurred in August 2020, when the price of BTC was just over $10,000.

Since then, the company has never stopped buying more BTC, with only a small pause between April and June 2022, that is, while the crypto market crash triggered by the implosion of the Terra/Luna ecosystem was occurring. 

The chart also shows the curve of the so-called “Total dollar cost average,” which is how the average purchase price of BTC by the company has changed over time. 

Note that until the peak of November 2021, when the price of Bitcoin reached nearly $70,000 for the first time in history, the average purchase cost of MicroStrategy was very low, below $30,000. This level did not drop even with purchases at the bottom of the bear-market of 2022, remaining just above $30,000 until March 2024. 

However, even with exceeding the 70,000$ mark, the company continued to buy, thus bringing the average purchase cost to 40,000$ in November. 

With the bull run triggered by Trump’s electoral victory, the company continued to buy, thus causing its average purchase cost of BTC to soar above $60,000.

Currently, MicroStrategy appears to own 461,000 BTC, although it probably purchased more yesterday, acquired by spending a total of less than 30 billion dollars. The current market value of those Bitcoin turns out to be over 45 billion, with a potential gain of about 50%. 

The price of Bitcoin

Having for now an average purchase price of $60,000, MicroStrategy’s investment in Bitcoin would remain largely profitable even with a new purchase at a price above $104,000. 

Today the price of BTC fell below $99,000, effectively returning to what it was in mid-January. 

By now, since mid-December, the price of Bitcoin has been unable to break through the wall of $108,000, because every time it gets close or surpasses it, it comes back down. 

The hypothesis circulating is that it might do as in 2017, after Donald Trump’s first inauguration at the White House, that is, move sideways until the end of the month and then perhaps start again on January 31. 

At that time it was like this, because from December 28, 2016, to January 30, 2017, it practically moved sideways around $900, only to suddenly wake up on January 31, rising to $970. In February, it managed to climb back above $1,000, and after a brief correction below $950, it resumed its run to reach the new all-time highs of that time at $1,200.